SOURCE: North Bay Resources Inc.

December 15, 2008 08:02 ET

North Bay Issues Shareholder Update; Pre-Announces Positive Q4 and FY 2008 Earnings

SKIPPACK, PA--(Marketwire - December 15, 2008) - North Bay Resources Inc. (PINKSHEETS: NBRI) ("North Bay" or the "Company") today issued a shareholder update in response to shareholder inquiries concerning recent volatility in the Company's stock.

--  With two weeks remaining in the current quarter and pending final year-
    end adjustments, the Company now expects to report fourth quarter and
    fiscal year 2008 earnings of $0.002 per share when earnings are released
    next month.  Revenue for 2008 is expected to be reported at $155,777.04, an
    increase of 240% over 2007.  Shareholder equity is also expected to
    increase by over 170% to $0.006 per share, based on 23,708,001 shares fully-
    diluted.  As of the close of trading on Friday, December 12, 2008, the
    public float as reported by DTC was 5,733,907 shares, and the stock price
    closed at $0.0055 per share.
    
--  During the quarter, the Company and its affiliates have repurchased
    285,425 shares of common stock under the Company's authorized stock buyback
    program, of which open market purchases by the Company's CEO accounted for
    274,625 of these shares.  The aggregate of these shares represents 5% of
    the public float.
    
--  The Company recently announced two joint-ventures with Hidalgo Mining
    International Inc. ("Hidalgo") on our Silver Leaf and Gold Hill Project
    properties in southeastern British Columbia.  Hidalgo has committed to
    spend an aggregate of up to $2.5M ($1.25M on each property) for assessment
    work, drilling, and surface ore recovery operations over three years.
    
--  Negotiations for the acquisition of a fully-permitted operating mine
    in northern California with a potential resource of approximately 500,000
    ounces of gold are continuing.  An independent valuation is expected to be
    completed and certified in Q1 2009, weather-permitting, which will
    determine whether the Company will be able to secure adequate funding to
    complete the acquisition and commence mining operations.  With the price of
    gold remaining firm over recent months even as other commodity prices have
    fallen significantly, the Company remains confident that the price of gold
    will be supportive of a transaction being successfully concluded before the
    end of Q2 2009.
    

North Bay CEO Perry Leopold stated, "With the recent volatility in our share price and subsequent inquiries by shareholders, I feel it is important to issue an immediate update prior to the end of the quarter to assure shareholders that our fundamental business and future prospects have not changed in any way whatsoever. On the contrary, with our recent announcements of two new joint-ventures under contract, our future prospects have in fact greatly improved this quarter, and we expect to announce a 4th consecutive quarter of positive earnings and an increase in annual revenue of over 240% when we report our results next month. The fact that our stock price has fallen below the value of shareholder equity on a per share basis, a P/E of 2.75, and a market cap that is currently at a discount to our revenue, makes it incumbent upon me to reiterate once again that we remain firmly committed to increasing shareholder value in every way possible, regardless of whatever exogenous events might affect our share price in the short-term."

About North Bay Resources Inc.

North Bay Resources Inc. engages in the acquisition, management, and development of precious metal and other mining properties. By combining state-of-the-art technology with traditional acquisition targeting, the company's mission is to build a portfolio of viable mining prospects throughout the world and developing them through its subsidiaries and partners to their full economic potential.

SAFE HARBOR FOR FORWARD LOOKING STATEMENTS

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.

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